Looking At The Gap Between Textile Enterprises From The Cotton Crisis

In August 5, 2016, the NDRC and the Ministry of Finance issued a notice on the postponed storage of cotton reserves in 2015/2016.

The announcement of reserve cotton postponed has been officially settled.

From the beginning of August, the downward trend began. As of today, cotton prices are still on the decline. On the one hand, traders have reduced the enthusiasm of participating in the auction. On the other hand, textile enterprises have begun to take their time and take a wait-and-see attitude and continue to follow the strategy of buying and selling.

It is estimated that cotton prices will not rise suddenly in the short term.

However, it does not mean that cotton textile enterprises can relax their mentality.

However, through this cotton crisis, the gap between cotton and textile enterprises is particularly obvious. According to the feedback from the industry, check out the crisis response. What are the answers given by the textile enterprises?

Crisis management -- "noisy"

In this cotton crisis, a number of textile enterprises showed their strong courage, the spirit of daring to resist, that is, because of their "dares", can let the country give a new policy of reserve cotton, and finally the country has given a more satisfactory reply - the reserve cotton is postponed for one month, the cotton price falls, and the short term will take on a fall, and the cotton enterprise can be temporarily relieved.

According to market feedback, cotton prices can basically solve the production demand of cotton textile enterprises, and cotton prices are basically in the middle.

However, cotton prices will not have a big decline in the future, and the possibility of a rebound will be relatively large. Enterprises wishing to profit from raw material costs need to pay special attention to market changes.

It is still dangerous to support enterprises' survival only on the cost of raw materials.

Crisis management -- "create"

However, some enterprises are still resistant to pressure. When other enterprises are concerned about the price of raw materials, they will always find a new way to develop their own research and development. The rising cost of raw materials is not the biggest obstacle to their survival.

Developing new products and taking a more high-end route can also earn considerable profits.

It is also a trading enterprise, facing the fluctuation of cotton prices, Luo Jin, the operator of Kahashi Maiki Europe textile Co., appears to be very calm.

It turned out that their company successfully developed 100, 120 branches and other high-density cotton cloth.

"At present, it has been recognized by the French customers and entered the dyeing pilot stage."

Luo Jin said excitedly.

It is understood that in China

80 cotton cloth has been regarded as a high density and high density product. Now, "Yi Xi Ou" has broken through the routine, and has developed more than 100 cotton cloth, and has been recognized by customers.

"The price of high density cotton cloth can be sold from 60 yuan to 70 yuan, and the cost of cotton yarn will account for seven or eight of the fabric cost, down to about 30%."

Luo Jin said that such high-end fabric development has invested heavily, but the company's resistance to raw materials and other market risks has been greatly enhanced.

It is understood that at present, the company has purchased new equipment, bulk production of high-density high-density cotton cloth, to high-end products.

Located in Qian Qing town, Xinle textile and Chemical Fiber Co., Ltd. is a middle and high grade shirt fabric manufacturer.

In the first half of this year, although the price of cotton rose sharply, the "Xinle textile" maintained a good momentum of development, and orders continued to come home, better than last year.

Xu Guoyou, director of the office of the company, analyzed the reasons and believed that the company's independent research and development capability was strong, and it earned valuable voice for the product.

It is reported that the company has developed more than 2000 new varieties and is well received by customers.

What is most worth mentioning is that the company has developed a number of functional cotton fabrics with breathability, sweat absorption and sterilization to cater for the needs of high-end customers.

At present, only functional cotton cloth accounts for 1/3 of the company's products, and the profit margins are large.

Located in an Chang town, "Yue Xin Printing and dyeing" is an unknown small and medium-sized enterprise in the textile industry of Shaoxing. It mainly processes and dyed dyed fabrics.

The company develops new fabrics with original design and functionality as its selling point. Finally, a composite fabric with waterproof, fireproof, breathable and sound pmission has won the favor of the international brand in one fell swoop.

Pu Jian Feng, chairman of the company, proudly said that this composite fabric, which is waterproof, fireproof, breathable and pparent, has revolutionized the traditional acoustic materials and has become the only fabric supplier of JBL.

How to price new fabrics? 200 yuan a metre! Pu Jian Feng, who has been engaged in textile industry for more than 20 years, has come up with a "bizarre" high price.

JBL without saying a word, he immediately decided to sign up with "Yue Xin dyeing and printing" and became the only supplier for his fabric, one of which was 1 million meters.

"The order for JBL has been released to the end of this year."

"Original + function" allowed Pu Jianfeng to fully grasp the price "right to speak" and become the "top seller" of the international brand. BOSE (PhD) stereo, Google (Google) smart home and so on had thrown "olive branch", intending to cooperate with them.

Crisis management -- "hide"

Cotton prices have gone up and down, making the business of raw cotton fabric worse, especially trade oriented enterprises.

A textile enterprise in the coastal area has gradually abandoned the export of cotton textile products. The operator said that the trade profit margins of the enterprises had been swallowed up and down.

Qian Qing, a cotton production company, is also feeling the pressure. The company sells its products to the export market.

Processing enterprises, affected by the international situation, clothing export is not very ideal. The fluctuation of cotton prices makes it difficult for garment enterprises to digest and can only undertake by the textile enterprises themselves.

To cope with the crisis, not every enterprise can deal with it calmly. In the industry, there are many small and medium-sized textile enterprises lacking technology and funds and the pressure to fight against the market. They have chosen to cut down production or even stop production.

If these enterprises fail to upgrade themselves, they will probably be phased out.

A crisis, three different responses, fully see the gap between enterprises, however, compared to "noisy", "second" creation is a real strong foundation for enterprises, of course, the cost of innovation is great, not any enterprise has the ability to innovate, this may need some "good luck".

The cotton incident has not yet been settled. It is only a short period of adjustment. In the future, it is likely that there will be a phenomenon of "cattle returning". It will be a bit tardiness to take a step by step with cotton enterprises.